Posts Tagged ‘los angeles bankruptcy’

Without spending, our economy would come to a screeching halt. When our income is diverted toward paying high interest, over-limit fees, and late fees on items we bought years ago and no longer have, we no longer make a meaningful contribution to our economy. In fact, the opposite is true. We can’t pay the chef for his art nor tip the server. The vacations get cut. More importantly, we’re no longer capable of buying the things we need. Instead, the bankers get bonuses on top of bailouts, and we go without.

Our debt load has reached critical mass and the collective “we” is suffering. Our government has proven that they have no cure for the Debtpidemic. Bailouts did not work. Stimulus did not work. Cash for Clunkers did not work. Nationalizing banks did not work. In short, socialism has proven ineffective.

The question emerges, what can we do to make a meaningful contribution toward reviving our decaying economy and providing real relief to those suffering from the effects of toxic debt, if we too are upside-down and underwater?

Declaring bankruptcy frees up precious dollars and puts them back to good use in the economy, making it possible for us to buy the things we need, and a few of the things we want. Now the bellboy gets a tip, the hotels stay open, and the parasailing instructor keeps his job. With the cash that’s not being handed over to AMEX, Visa, MasterCard and your bank, we can start a new business, buy inventory, hire staff, advertise in the local papers and dry clean clothes to look sharp for the big presentation.

A common misperception is that when you file bankruptcy you lose all your “stuff”; house, cars, motorcycle, RV, jewelry, the dog. It’s simply not true. Each bankruptcy filer is entitled to exemptions; categories of items and dollar amounts you are permitted to keep. The details are based on your state of residence. Exemptions cover home equity, vehicles, tools, retirement funds and in many instances there is a wild card you can use to protect anything you desire. Personal priorities and strategy play a part. In most bankruptcy cases, the filer gives up nothing. In your free consultation with Doan Law Firm, we look at your specific situation and the effect of bankruptcy on your “stuff”.

Many clients come into our office exhausted. They’ve been running on a hamster wheel trying to keep their credit cards happy with a minimum payment each month. They’ve pulled money from every possible source, extra jobs, kids’ college funds, their 401k, and even other credit cards.

Despite running for years, they’ve gained no traction. They are in fact further behind than when they started and they’re saying “uncle”. Only a farfetched lotto win will bring the upturn they need because it takes 48 YEARS to pay off a $15,000 credit card paying the minimum monthly payment! Imagine you’re 30, part of a young family, ferrying kids to soccer practice. You will be writing the very same check as you bounce your grandchildren on your knee.

It’s our desire to help people get on the upswing without years of heartache and struggle. See how bankruptcy can rid you of your financial concrete boots.

A sad reality is that often divorce and bankruptcy go hand in glove and you need to know how one affects the other. As a general rule, it is best to first file for bankruptcy as a married couple. Discharging your debts will help your divorce proceed more smoothly. The divorce case can still be filed and decisions can be made on the issues of marital status, custody and support. The divorce property split must wait until the bankruptcy is discharged unless one of the parties asks the bankruptcy court for permission to proceed. Of course, there can be factors that make a different structure more desirable. You need experienced bankruptcy lawyers like the Doan Law Firm to work with you and your family law attorney to give you and your family a fresh start.

Why do they raise interest rates on clients that have been paying faithfully for years?

Why won’t they work with me?

Why do they call me every 3 minutes when I’ve paid all I can?

Why do they send my dead dog credit card offers?

Why are they sending me new card offers in the mail when they know I can’t pay?

After meeting with literally tens of thousands of clients as a bankruptcy law firm, putting together our over 200 years of bankruptcy law experience and reading voraciously on the subject, our answer to WHY is: We have no idea.

If the credit card companies asked our opinion, we’d tell them that many people would eat cat food to be able to pay them if only they’d stop raising the rate and minimum payment. Every one of our bankruptcy attorneys would tell them if they worked with their customers in these tough economic times it would be a win-win . We’d tell them that the multi-million dollar bailout of our tax money means they have a moral obligation to work toward a solution for customers that have lost jobs, suffered a medical or family crisis. Our pleas fall on deaf corporate ears.

If credit card companies acted responsibly and not like 3-year-olds in a sand box with only one shovel, we could perhaps guess the answer to WHY. Until then, bankruptcy remains a very viable and wise response to out of control credit card companies.

The information on this bankruptcy attorney/law firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, e-mails or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and reciept or viewing of this information does no constitute, an attorney-client relationship.

doanlaw.net is an informational website sponsored by Brothers Law Group LLP (dba Doan Law Group), Law Offices of Gregory J. Doan Esq APC, SN Doan APC, Michael G. Doan APC, and Shawn A. Doan APC. Each of the foregoing entities individually owns and operates its respective law practice. Each entity has been designated by the Federal Government as a qualified debt relief agency that helps folks file bankruptcy under the bankruptcy code.
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